The Bangladesh Bank has refused to issue a No Objection Certificate (NOC) for Chowdhury Manzoor Liaquat's appointment as managing director of Islami Finance and Investment Limited (IFIL).
The central bank, in a letter issued on Tuesday, also advised the non-bank financial institution (NBFI) to appoint someone with a clean image to the post.
Asked on the matter, a Bangladesh Bank senior official said, "Manzoor Liaquat is currently serving as the managing director of Union Capital Limited. The central bank's decision came after considering a number of aspects."
The central bank denied the request for NOC and mentioned it was in the interest of depositors.
Earlier, the IFIL sought clearance on Liaquat's appointment as its managing director from 27 September of this year.
At present, Maruf Mansur is serving as the IFIL's managing director (current charge).
Following the central bank's decision on the matter, an IFIL official said, the board will now decide on whom to appoint.
The IFIL, until the end of June this year, has disbursed a total of Tk1,315 crore in loans, of which the default loan amount stands at Tk49 crores, 3.77% of the total distributed loans.
On the other hand, Union Capital Limited, where Manzoor Liaquat is serving as the MD, has distributed loans amounting to Tk1,187 crores, of which Tk131.82 crore is in default.
Listed on the capital market in 1986, the IFIL has paid bonuses to its shareholders for over 10 years. Even during the Covid-19 pandemic, it paid a 5% stock dividend. The share price of IFIL in the last one year ranged between Tk8.80 to Tk21.80.